Subjects economics

Gdp Calculation B456C2

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1. The problem asks to calculate GDP based on the given table of economic values. 2. GDP can be calculated using the expenditure approach formula: $$GDP = C + I + G + (X - M)$$ where: - $C$ is Consumption expenditure - $I$ is Investments - $G$ is Government expenditure on goods and services - $X$ is Exports - $M$ is Imports 3. From the table: - $C = 750,000$ - $I = 300,000$ - $G = 200,000$ - $X = 250,000$ - $M = 300,000$ 4. Substitute the values into the formula: $$GDP = 750,000 + 300,000 + 200,000 + (250,000 - 300,000)$$ 5. Simplify inside the parentheses: $$GDP = 750,000 + 300,000 + 200,000 + (-50,000)$$ 6. Add the values: $$GDP = 750,000 + 300,000 + 200,000 - 50,000 = 1,200,000$$ 7. Therefore, the GDP equals $1,200,000$. The correct answer is d. 1,200,000.